LECO · Lincoln Electric Holdings, Inc.

Lincoln Electric delivered a solid first quarter 2026, with net sales rising 11.7% to $1,121.4 million. The growth was broadly based, comprising a 7.8% increase in organic sales, a 1.6% contribution from acquisitions, and a 2.3% benefit from favorable foreign exchange rates. This top-line expansion translated into strong profitability, as adjusted operating income reached $189.0 million, maintaining a robust adjusted operating margin of 16.9%, consistent with the prior year period. GAAP operating margin improved slightly to 16.6% from 16.4%. Chairman and CEO Steven B. Hedlund attributed the performance to disciplined cost management and improving industrial activity in the Americas, noting the company's agility in navigating evolving operating conditions while advancing its new long-term RISE strategy. Adjusted diluted earnings per share increased to $2.50 from $2.16 in the prior year. The company demonstrated continued commitment to shareholder returns, distributing $101 million through dividends and share repurchases during the quarter. However, cash conversion declined significantly to 46% from 130% in the same quarter last year, primarily due to a decrease in net cash provided by operating activities to $102.2 million and higher capital expenditures of $39.2 million. The balance sheet remained stable with total debt of approximately $1.31 billion and total equity of $1.51 billion as of March 31, 2026.